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Amul Milk Price List in Delhi and NCR (2016)

Amul Milk Price List in Delhi and NCR (2016)

Amul, a household name when it comes to dairy products in India, decided to hike the prices of milk offered by the company. It was a surprising move and was kind of a shocker. An upward price move is a straightforward indicator of rising inflation but history trends of average Consumer Price Index or inflation have a different story to narrate.

Taking a look at the historical data of Consumer Price Index in Indian subcontinent:

CPI calculation year

Average CPI

2015

5.96 %

2014

6.37 %

2013

10.92 %

2012

9.30 %

2011

8.87 %

2010

12.11 %

2009

10.83 %

From 2013 to 2014, the average Consumer Price Index actually dropped 4.55 points. In 2015 so far, the CPI has dropped even further and has actually reached historic lows, which is which Reserve Bank of India managed to introduce 50 points reduction in repo rate with the assumption that market corrections in prices will not take place until next year.

Amul on the other hand cited the reason that raw materials procurement costs increased, leaving no other option for the company other than increasing the prices of milk. Something just doesn’t add up! In case of milk farming, basic raw materials include cattle feed and labor. Of course there are other raw materials but those two are the primary ones.

What are we missing? May be bad weather? Well, 2014 was not declared as a drought year in all over India though there was slight rainfall deficit in northwest India. Skymet declared year 2014 as a year of mild drought. Was that enough to alter raw material prices?

We don’t really know but what we do know is that the price hike in milk by Amul was not a justified move. 2013 saw an increasing prices of dairy products by both Amul and Mother Dairy and it was quite justifiable taking account of increasing inflation for 3 years straight.

But, after 4.55 points drop in Consumer Price Index from 2013 to 2014, the justification for increased milk prices do not look like an honest justification. Anyway, residents of Delhi NCR have accepted the price hike. That is what we do! We are slaves of corporations. They make us do what they want us to do and we are mere puppets at their hands.

Here is a quick list of Amul Milk Prices that are currently applicable in Delhi NCR in 2016

Amul Milk Name

Price per liter

Amul Diamond – Premium quality milk

Rs 26 Half Litre Pack

Amul Gold – Full cream milk

Rs 49 1 Litre Pack , Rs 25 Half Litre Pack

Amul Taaza – Toned milk

Rs 39 1 Litre pack, Rs 20 Half litre Pack

Amul Slim n Trim (available in small pouches an half liter packs)

Rs 36 1 Litre Pack, Rs 18 per half liter

Amul increased the prices of all products by INR 2 per liter. As per Amul, the increased revenue earnings from the price hikes will percolate down directly to farmers. The company said that it pays 80% of its total revenue to the farmers who produce the milk in farms. Sounds good but that is something highly doubtful given the fact that we don’t really find the price hike justified in the first place.